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The following is a list of activities in an economy: (i) Allocation (ii) Production (iii) Distribution…

Musgrave's three fiscal branches are allocation, distribution and stabilization. Production can be a means of public policy, but is not a separate fourth branch in this…

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The following is a list of activities in an economy:

  • (i) Allocation
  • (ii) Production
  • (iii) Distribution
  • (iv) Stabilization

Which of these falls in the domain of government according to Musgrave?

Select one answer
Answer and explanation

Correct answer C

Musgrave's three fiscal branches are allocation, distribution and stabilization. Production can be a means of public policy, but is not a separate fourth branch in this classification.

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  • UGC NET Economics

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